Press release

< Acquisitions and divestitures

DSC TO ACQUIRE TEXAS INSTRUMENTS TELECOMMUNICATIONS SYSTEMS DIVISION

DSC To Expand Intelligent Network (IN) Product Family With TI's Voice-Activated Dialing and Fax Systems

(May 21, 1997) -- DSC Communications Corporation (DSC) and Texas Instruments Incorporated (TI) announced today an agreement for the cash purchase by DSC of the Telecommunications Systems Division business of TI. Financial details were not disclosed. DSC will merge this business with DSC's switching systems group upon completion of the purchase which is expected by mid June. The acquisition will allow DSC to enhance its INfusion™ family of intelligent network (IN) products, adding such capabilities as voice-activated dialing and facsimile messaging services.

The acquisition involves approximately 100 Austin and Dallas-based TI employees. The agreement also includes a cooperative relationship between DSC and TI's Multimedia Technology Laboratory for speech recognition , which is based in Dallas.

Founded in the late 1980s, TI's Telecommunications Systems Division is a provider of voice-enabled services. Its products, which include voice-dialing services, voice-activated network control and facsimile messaging services, are already providing valuable services for telecommunications network operators in both the wireline and wireless markets. These products will be combined with DSC's INfusion family, designed for local, long-distance and wireless carriers, in order to create a broader line of IN solutions. With these merged technologies, DSC will be able to offer service providers the ability to deliver voice-driven enhanced services in an IN environment.

"TI's voice-activated technology proved to be an ideal fit with our existing line of IN systems," said Wylie Basham, group vice president, DSC's switching systems. "We are excited about this expansion of our INfusion product strategy, and we see this technology bringing important, new service differentiations for today’s carriers, as they seek to enhance their networks for both existing and new customers."

Tom Engibous, president and chief executive officer of TI, said "The pioneering work of Texas Instruments Telecommunications Systems Division has made it a leader in voice recognition technology for the public switched telephone network. The combined businesses will provide a great competitive advantage for their customers."

Customers will benefit as the advanced telecommunications solutions of two high-tech market leaders are merged into one product portfolio. The acquisition will add significant new capabilities to DSC's IN product, with immediate availability to customers. Using DSC's INfusion Intelligent Peripheral 4000 (IP 4000), telecommunications carriers will now be able to offer both INfusion Voice-Activated Services (including voice-activated dialing and voice-activated network control capabilities) and INfusion Integrated Message Services (such as facsimile services, including fax mailbox, fax broadcast and fax-on-demand).

DSC will demonstrate the combined IN product strategy for the first time at Supercomm '97, which runs June 3-5 in New Orleans. DSC's booth #703 in Hall B will include displays of these new IN-based services.

Texas Instruments Inc., headquartered in Dallas, Texas, is one of the world's foremost high-technology companies, with sales or manufacturing operations in more than 30 countries. TI products and services include semiconductors, software productivity tools, consumer electronics, electrical controls, and metallurgical materials.

DSC Communications is a global provider of advanced telecommunications products, including digital switching, transmission, access and network management systems. DSC’s integrated network solutions support voice, data and video services, such as intelligent networking, wireless, Internet and switched digital video applications. DSC has annual revenues of approximately $1.4 billion and is active in more than 60 countries worldwide.

INfusion is a trademark of DSC Communications Corporation.